Legislature(2023 - 2024)BARNES 124
02/06/2024 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB255 | |
| HB282 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 255 | TELECONFERENCED | |
| *+ | HB 282 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 255-PORT OF SOUTHCENTRAL AK; PORT AUTHORITY
1:05:30 PM
CHAIR MCCABE announced that the first order of business would be
HOUSE BILL NO. 255, "An Act relating to the Port of Southcentral
Alaska; establishing the Port of Southcentral Alaska Authority
to manage and operate the Port of Southcentral Alaska; and
providing for an effective date."
1:06:06 PM
REPRESENTATIVE STUTES questioned how there could be a committee
substitute when there has not been a committee meeting on the
bill.
CHAIR MCCABE replied there were two small grammatical changes,
and it would be the will of the committee whether to adopt the
committee substitute.
1:06:43 PM
REPRESENTATIVE VANCE moved to adopt the proposed committee
substitute (CS) for HB 255, Version 33-LS0995\S, Walsh, 1/30/24,
as the work draft.
1:07:05 PM
JULIE MORRIS, Staff, Representative Kevin McCabe, Alaska State
Legislature, provided the summary of changes on the CS to HB
255, [included in the committee packet], on behalf of
Representative McCabe, prime sponsor, which read as follows
[original punctuation provided]:
Changes from Ver. B to Ver. S include:
Page 1 line 9 - "rail" has been added to the
sentence.
Page 4 lines 21-22: Section 30.19.160. Quorum and
voting. (a) - Four members of the board is amended to
five members.
Page 4, line 23: Section 30.19.160. Quorum and
voting. (b) - Four affirmative votes are required for
board action is amended to five affirmative votes.
1:07:44 PM
REPRESENTATIVE STUTES asked for clarity regarding the quorum
change.
CHAIR MCCABE confirmed it was five.
1:08:02 PM
CHAIR MCCABE removed his objection to the adoption of the
committee substitute. There being no further objection, Version
S was before the committee.
[Chair McCabe passed the gavel to Vice Chair Vance].
1:08:31 PM
The committee took a brief at-ease at 1:08 p.m.
1:08:55 PM
CHAIR MCCABE, as prime sponsor, presented HB 255 and read from
the sponsor statement [included in the committee packet], which
read as follows [original punctuation provided]:
House Bill 255 creates the Port of Southcentral Alaska
Port Authority, providing the necessary powers,
structure, and oversight to ensure the effective and
responsible administration of vital port facilities in
our state.
The legislation begins by establishing legislative
findings and intent, recognizing that creating an
authority is in the best interests of the state. The
Port of Southcentral Alaska Authority is entrusted
with the powers, duties, and functions needed to
operate the ports in Anchorage and the Matanuska
Susitna Borough. The authority will comprehensively
oversee its seaport, rail, industrial, and other
properties, assuming exclusive responsibility for
managing both the financial and legal obligations
related to the ports. This includes handling
applications for a diverse array of funding
opportunities, notably federal grants, to ensure
efficient and effective operations across its various
sectors.
House Bill 255 is a comprehensive and forward-thinking
measure designed to enhance the Port of Southcentral
Alaska's functionality, ensuring it operates
efficiently, transparently, and in the best interests
of the state. I urge my fellow legislators to support
this crucial legislation for the benefit of our
communities and the economic well-being of Alaska.
CHAIR MCCABE added that the sectional analysis for HB 255 is
long, as it is a big bill, and asked if his staff should present
it.
1:13:31 PM
VICE CHAIR VANCE asked for the will of the committee.
REPRESENTATIVE MCKAY moved to dispense with the reading of the
sectional analysis.
VICE CHAIR VANCE invited questions from committee members.
1:14:01 PM
REPRESENTATIVE SUMNER asked Chair McCabe if he envisioned the
bill facilitating funding for the regional port as well as the
port of Anchorage for revitalization.
CHAIR MCCABE affirmed that is the idea. He added that "we are
stronger together" and both ports bring different synergies to
the mix.
1:15:26 PM
REPRESENTATIVE MCKAY asked Chair McCabe if he foresaw a Knik Arm
bridge being under an organization's authority.
CHAIR MCCABE replied that would be "beyond his wildest dreams,"
and something that should be worked towards. He related that,
for example, bridges in New York are under the New York Port
Authority, and if there was a port authority, it would be a
bigger mechanism and bigger group of people working together to
leverage funds.
REPRESENTATIVE MCKAY speculated that the authority created by
the bill could possibly facilitate the acceleration of the Knik
Arm Bridge in the future.
CHAIR MCCABE said absolutely.
1:16:58 PM
REPRESENTATIVE MINA questioned why the focus is on these two
specific ports.
CHAIR MCCABE replied that there was a discussion years ago about
combining the entire state into one port authority, and he
stated that his idea to start with two ports would be a venue
for other cities to apply to be part of the port authority. He
said it would be a small step forward.
REPRESENTATIVE MINA referred to the short title of the bill and
asked whether it would require a legislative change if another
town from a different region wanted to be part of the authority.
CHAIR MCCABE said possibly.
REPRESENTATIVE MINA brought up the current modernization plan
and offered her understanding the next phase of construction
would begin this summer. She asked how this may impact current
plans.
CHAIR MCCABE said his vision is that there would be no impact,
and contracts would still be enforced.
REPRESENTATIVE MINA asked for an idea of what a timeline may
look like for implementation if the bill passed.
CHAIR MCCABE responded that depends on [the legislature], the
city, the borough, and negotiations. He added that it may take
years.
1:21:47 PM
REPRESENTATIVE STUTES asked about conversations with the
municipality or user groups.
CHAIR MCCABE affirmed he had talked to boroughs and port
managers, but not the Municipality of Anchorage, which he said
had been resistant in the past.
REPRESENTATIVE STUTES asked about the resistance in Anchorage.
CHAIR MCCABE replied it may have to do with politics and money,
and the port needs money. He stated that the "pieces could line
up nicely" if everyone could get on the same page. In response
to a follow-up question, he replied that last year there were
discussions with the pilots but no real discussion with user
groups.
REPRESENTATIVE STUTES asked whether the pilots were supportive.
CHAIR MCCABE replied absolutely.
1:26:02 PM
REPRESENTATIVE MINA brought up ownership and whether it is being
transferred to the state under an authority and how a domain
might factor in, as well as the impact on local governments.
MS. MORRIS replied that details would have to be worked out and
there would be a transition period. She further explained that
the port itself would be tax exempt except for a couple items,
and once the bill is dissected, there is transition built into
the bill.
1:27:40 PM
REPRESENTATIVE STUTES asked whether the port is currently tax
exempt.
MS. MORRIS offered her belief it was.
REPRESENTATIVE STUTES stated that she would like to know if that
is the case.
CHAIR MCCABE said that the vision is to make Port Mackenzie tax
exempt, but they are not currently.
REPRESENTATIVE STUTES referenced push back from the
municipalities regarding their revenues.
CHAIR MCCABE agreed that is a good point and a detail that must
be worked out.
1:30:16 PM
REPRESENTATIVE SUMNER asked about property taxes charged by the
port.
CHAIR MCCABE said that would be the recommendation, that similar
to the railroad, there would be a certain amount of lease money
returned to the property owner, which is the city.
1:31:32 PM
REPRESENTATIVE STUTES questioned who owns the 9,000 acres and
whether it included private ownership.
CHAIR MCCABE said that of the 9,000 acres that the borough owns
in Port McKenzie, there is a small piece owned by the University
of Alaska (UA).
1:32:23 PM
REPRESENTATIVE MINA questioned whether local governments would
remove their ability to use their local bonding power if
ownership would be transferred from local to state government.
CHAIR MCCABE replied no. He gave an example of the Alaska
Railroad having the authority to use bonds.
REPRESENTATIVE MINA reflected on an earlier discussion regarding
pricing, and referred to the fiscal note and whether additional
financial support would be needed. She expressed her curiosity
towards the purchasing price for the port in Anchorage.
CHAIR MCCABE said the financial details were not expected to be
questioned in depth since this is just a bill introduction. He
said there would be a need to value both ports and to move
forward for the purpose of docking different vessels.
1:36:35 PM
REPRESENTATIVE STUTES asked if a cargo ship was the largest ship
in the world.
CHAIR MCCABE confirmed it was.
VICE CHAIR VANCE asked Chair McCabe to speak to why it would be
an added value to allow for the flexibility he was seeking.
CHAIR MCCABE explained that the idea is similar to the Alaska
Railroad and the benefit to the state would come in resource
development jobs.
1:38:55 PM
VICE CHAIR VANCE asked for clarification whether the idea of the
port authority was to enable a centralized command to do what
the individual municipalities cannot do on their own.
CHAIR MCCABE replied absolutely.
1:39:42 PM
REPRESENTATIVE SUMNER expressed that he is not sure that the
state taking municipal property would be "a taking" but if it
is, perhaps a consideration could be the money required for the
revitalization of the Port of Anchorage and everyone can win.
1:40:09 PM
REPRESENTATIVE STUTES asked Chair McCabe whether he worked with
the Alaska Railroad on any of this.
CHAIR MCCABE replied the railroad is a separate discussion right
now.
1:41:16 PM
VICE CHAIR VANCE commented that she liked the idea of a port
authority that would strengthen the state's capacity for
resiliency. She said it would be an ongoing conversation.
[HB 255 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB282.Ver.A.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.SponsorStmt.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.Ver.A.Sectional Analysis.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.FiscalNote.DEED.2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB282.VerA.FiscalNote.DNR2.2.24.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB255.VerB.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| HB255.SponsorStatement.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| HB 282, SB 199 State Land_Disposal_Sale_ Briefing Paper 02.06.2024.pdf |
HRES 2/23/2024 1:00:00 PM HTRA 2/6/2024 1:00:00 PM |
HB 282 SB 199 |
| HB 282 DNR State Land_Disposal_Sale_Presentation 02.06.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 282 |
| HB 255.SectionalAnalysis.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| HB255.VerB.FiscalNote.DCCED.02.6.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| CSHB255.VerS.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |
| CSHB255.VerS.SummaryChanges.2.2.24.pdf |
HTRA 2/6/2024 1:00:00 PM |
HB 255 |